PMM vs VGM: Correlation
Measured on weekly returns over the past three years, Franklin Managed Municipal Income Trust Shares of (PMM) and Invesco Trust for Investment Grade Municipals (VGM) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PMM and VGM?
Across a 3-year window, the weekly returns of PMM and VGM correlate at 0.74, strong. Little has changed lately, as the 1-year reading of 0.76 lands near the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 113.7 %².
Among the 11 assets we track against PMM, VGM ranks #4 by 3-year correlation. Twelve-month performance is nearly a tie, at +13.8% for PMM and +17.3% for VGM.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
PMM vs VGM: side by side
| PMM (Franklin Managed Municipal Income Trust Shares of) | VGM (Invesco Trust for Investment Grade Municipals) | |
|---|---|---|
| 1-year return | +13.8% | +17.3% |
| 5-year return | -5.6% | -0.8% |
| Volatility (ann.) | 12.6% | 12.2% |
| Beta vs S&P 500 | 0.35 | 0.30 |
| Max drawdown (3Y) | -12.7% | -11.5% |
| Market cap | $0.3B | $0.6B |
| P/E (trailing) | 11.4 | 33.5 |
| Dividend yield | 4.84% | 7.51% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PMM | VGM |
|---|---|---|
| 2022 | -24.1% | -24.2% |
| 2023 | +1.9% | +3.0% |
| 2024 | +2.9% | +8.8% |
| 2025 | +10.6% | +11.1% |
| 2026 | +3.5% | +5.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PMM and VGM good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PMM and VGM?
The PMM/VGM correlation stands at 0.74 on a 3-year window (1 year: 0.76, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is VGM a good diversifier for PMM?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
On the −1 to +1 scale, 0.74 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: PMM correlations · VGM correlations
